Ep.021: The Swiss Army Knife of Retirement Planning for High-Income Earners

Summary

In this episode of the Millennial Money Canada podcast, hosts Guillaume Girard, Sam Lichtman and guest Tatenda Mawoyo delve into the intricacies of Retirement Compensation Arrangements (RCA). They explore the mechanics of RCA, who benefits from it, and its use cases, particularly in severance packages for high-income earners and professional athletes. The discussion also covers tax implications, investment strategies, and how RCA compares to other retirement plans. Additionally, they address the costs associated with setting up and maintaining an RCA, the scrutiny from the CRA, and legal precedents that impact its implementation. The episode concludes with final thoughts on RCA as a tool for effective wealth management.

 

Topics Covered in this Episode:

00:00 Introduction to RCA and Its Importance

03:08 Understanding Retirement Compensation Arrangements (RCA)

07:15 Who Benefits from an RCA?

11:45 Tax Implications and Benefits of RCA for Athletes

14:50 How RCA Works: Contributions and Refunds

18:44 Evaluating RCA for Business Owners

21:02 RCA vs. Holding Company: Trade-offs

23:56 RCA at Death: Beneficiaries and Tax Efficiency

26:33 Ongoing Contributions to RCA

31:11 RCA and IPP: Working in Tandem

33:59 Investment Options within RCA

34:11 Understanding RCA and Life Insurance Integration

41:15 Decumulation Strategies for RCA

48:45 Tax Implications and Compliance for RCA

53:19 CRA Scrutiny on High-Income Athletes and Executives

GBL Inc.
Website: GBL: https://gblinc.ca/about/

Tatenda M. LinkedIn: https://www.linkedin.com/in/tatenda-mawoyo-42ba5543/

Work with Millen Wealth Advisors
Book an intro meeting: https://www.mwadvisors.ca/
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Follow Sam and Guillaume on Social Media
Podcast YouTube Channel: https://www.youtube.com/@MillennialMoneyCanadaPodcast
Sam’s TikTok: https://www.tiktok.com/@millennialmoneycanada?lang=en
Sam’s LinkedIn: https://www.linkedin.com/in/sam-lichtman/
Guillaume’s Instagram: https://www.instagram.com/financialplannergui/
Guillaume LinkedIn: https://www.linkedin.com/in/guillaume-girard-cfa-cfp-08487170/

 

Keywords
Retirement Compensation Arrangement, RCA, tax benefits, retirement planning, high-income earners, severance packages, investment strategies, CRA scrutiny, wealth management, financial planning